Neo-banking start-up Zolve aims to provide credit cards to Indians traveling to the United States
MUMBAI: Zolve, a neo-banking start-up, has partnered with a US-based Community Federal Savings Bank (CFSB) to provide credit cards to Indians traveling to the US for higher education or a use. These people may have a credit history in India, but none in the United States. Zolve aims to use this credit history and other parameters to issue the cards.
Zolve will also open a bank account for its users before they actually move to the United States. The card is sent to users once they get there.
“Normally, banks in the United States require a social security number to issue credit cards for a customer and it takes 2-3 months to get it. However, what is not widely understood is that even a US visa is valid proof of identity for this purpose and that is what we do, ”said Raghunandan G, founder of Zolve, who was previously co-founder of Taxi-for-sure.
Customers must provide a US address within 90 days of opening the bank account. “The credit card has a standard interest-free period of one month. For those who pay the minimum balance due, there is a 6 month interest-free period on the outstanding amount and thereafter interest kicks in. The credit card also allows you to establish a US credit history as soon as possible. first day. This means that it becomes easier to get housing since landlords almost inevitably check renters’ credit histories before approving a rental. It also lowers your insurance premiums, ”he said.
Forex spreads and fees take a heavy toll on Indian immigrants and students in the United States. Zolve is working with an Indian bank to secure a favorable deal for its clients, Raghunandan added. Bank account, debit card and credit card are free, he said, with no minimum balance requirement. Zolve earns its income from merchant discount rates on cards.
According to Raghunandan, in today’s world, having a large branch is not as important as a good online banking presence.
All US bank accounts are insured up to $ 250,000 under insurance provided by the Federal Deposit Insurance Corporation, he said, including deposits with CFSB, Zolve’s partner bank.
Zolve was launched in December 2020 and has 45,000 registrations and an active customer base of 2,000 users for its bank account and cards. While it is currently focusing on the US-India use case, it will expand to other countries in the future.
Other startups offering international bank accounts to Indians include Winvesta, which launched a multi-currency account in June 2021, based in the UK. The account focuses on Indian residents looking to diversify their investments abroad. The Winvesta account has a one-time opening fee of $ 5 and a flat fee of $ 1 on online payments made from it, although incoming payments are free. You can subscribe to a basic level for $ 2.99 / month or a premium level for $ 9.99 / month.
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